J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
2011 INCOME TAX RETURN
INFORMATION PACKAGE
Please complete this “2011 Income Tax Return Information Package” which includes both the required basic
tax return data and the supplemental data required to identify whether special tax treatment may be required.
It also includes a “Financial Data” summary schedule to assist you in organizing your income and
expenses. The information which you provide to me in this document will reduce the time required for the
preparation of your 2011 tax return.
Although you may have submitted this same information in prior years, I review every line item on
every page each year to identify any changes that have occurred during the current tax year and errors
that may have occurred in prior tax years that may require the filing of an amended tax return.
***Pages 15-22 of this document contain a brief summarization of all of the significant tax law
changes for 2011. Please inform me if any of these changes will affect your 2011 return.***
Your 2011 personal tax returns are required to be filed by April 17, 2012, unless you request a six
month automatic extension of the time to file. However, this filing extension does not extend the
April 17th deadline for the payment of your 2011 income taxes.
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
2011 Tax Return Questionnaire Data
Please answer the following questions. They are intended to provide information needed for your tax return
preparation and to indicate where potentially more complicated reporting requirements may exist.
PERSONAL DATA:
1. Please indicate how you would like to describe your occupation or profession for your tax return:
Yourself: _____________________________________________
Your Husband/Wife:____________________________________
Yes No
2. Do you and your husband or wife want to contribute $3.00 of your tax
liability to the presidential election campaign fund? ( ) ( )
3. Names, ages, and social security number(s) of anyone whom you are claiming as a dependent:
NAME AGE SOC. SEC. #
___________________________________________________________________________
___________________________________________________________________________
_________________________________________________________________________________________
Did all the above dependents reside with you for the entire year? ( ) ( )
Are all the above dependents unmarried? ................................. ( ) ( )
Are any of the above dependents filing their own tax return? ( ) ( )
Can any of the above dependents be claimed by any other taxpayer (s)? ( ) ( )
4. Your Date of Birth___________________________ Spouse Date of Birth__________________________
5. Your Social Security #________________________ Spouse Social Security #_______________________
6. Your e-mail address__________________________ Spouse e-mail address_________________________
7. Your Work Phone #__________________________ Spouse Work Phone #_________________________
8. Your Cell Phone #____________________________ Spouse Cell Phone #__________________________
9. FAX Number _______________________________ Phone # to print on Form 1040__________________
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
PERSONAL DATA (Cont’d)
10. Mailing Address:_______________________________________________________________________
________________________________________________________________________
11. Electronic Filing Yes/No Direct Deposit of Refund (If Any) or Withdrawal - Yes/No If you
answered “Yes”to this question, I will need the following additional information:
Five-Digit PIN for Yourself _______________ Five-Digit PIN for your Wife_________________
Name of Financial Institution_____________________ Checking/Savings Bank Routing #_____________
Your Bank Account # for Direct Deposit _______________________ Date for Withdrawal _______________
Yes No
12. Did you support anyone else (other than your children) in 2011 that you believe
that you can claim as a dependent? ..................................... ( ) ( )
13. If divorced or separated, are you claiming a child as a dependent for whom
you did not have custody of for the entire year? .................. ( ) ( )
Did you pay or receive any alimony?.. ...................................... ( ) ( )
If so, what was the total amount for 2011: $________________________
14. Were you or your spouse age 65 or older as of 12/31/11?
You?.. ............................................................................... ( ) ( )
Your Spouse ?.. ................................................................ ( ) ( )
Income:
15. Did you or your spouse have any income from any outside business interests (including
rental property) in addition to your normal employment income? ( ) ( )
16. Did you or your spouse receive any distributions from a pension, profit
sharing, or other retirement plan during the year? .............................................( ) ( )
17. Did you receive any installment sale payments in 2011 that were from a sale
that was completed in a prior year? ( ) ( )
18. Did either you or your spouse receive any disability or unemployment
compensation during the year? .............................................. ( ) ( )
Total amount received in 2011: $_________________ Received from State of _________________
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
Yes No
19. Did you or your spouse or dependents receive any social security benefits? ( ) ( )
20. Did you receive any interest income from a mortgage or note you originated? ( ) ( )
21. Did you or your spouse receive any capital gains distributions from any investments
or insurance plans?.. .............................................................. ( ) ( )
Financial Transactions:
22. Did you purchase, sell, or exchange your primary residence during the
previous two years? .. ............................................................... ( ) ( )
23. Did you purchase or sell any other real estate during the year? . ( ) ( )
24. Did you sell any stocks, bonds, or other securities during the year? ( ) ( )
If “Yes” please attach all of the Schedule D and 1099-B reports from your investment firms. Note:
Effective in 2005 the IRS requires all of the details for each individual transaction on Schedule D.
25. Were you a member of any partnership or, joint venture during the year?
......................................................................................... ( ) ( )
26. Did you make any non-cash charitable contributions such as clothing,
furniture, or other property?.. .......................................... ( ) ( )
27. Did you incur any moving or relocation expenses during the year? ( ) ( )
28. Did you incur an early withdrawal penalty in any savings accounts? .................( ) ( )
29. Did you pay mortgage interest to an INDIVIDUAL (not a bank or
financial institution)? ( ) ( )
If “Yes”, please provide their name, address, and social security #:
__________________________________________________________________________
30. Did you contribute more than $250.00 to any single charitable
or religious organization?...........................................................................( ) ( )
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
Yes No
31. Did you incur any child/dependent care expenses? .............. ( ) ( )
Amount $__________________________ Provider Name: _________________________
# of Children _______________________ Provider SSAN/Tax ID #__________________
32. Does anyone owe you money from a loan for which you have not been
able to collect?.. ............................................................... ( ) ( )
33. Please indicate the amount of any IRA contribution that either you or your spouse
made in 2011 that was not deducted on your 2010 tax return.
Self: $ _____________________________________________
Spouse: $___________________________________________
Were any IRA contributions made in 2011 and prior to 4/17/11 for
which were deducted on your 2010 tax return?.. .............. ( ) ( )
Miscellaneous:
34. Have you been audited by either the IRS or a state tax agency during the
past two years? ........................................................................ ( ) ( )
35. Did you make estimated tax payments (via Form 1040-ES and not Form
W-2) during 2011? ................................................................ ( ) ( )
If “Yes”, what were the actual deposit dates and the amounts for each payment?
_________________________________________________________________
_________________________________________________________________
36. Did you incur theft or casualty losses not covered by insurance which
exceeded 10% of your total income? ( ) ( )
37. IMPORTANT Please indicate the amount of the tax refund from your 2010
state income tax return $__________________ [1099-G] State: __________
38. 2011 Education Expenses (tuition, fees etc) [1098-T) $______________________ & Student
Loan Interest [1098-E] $________________________
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
FINANCIAL DATA
The following schedules are intended to identify the specific financial data necessary for the preparation of
your income tax return.
INCOME:
W-2 Salary/ Wages: Yourself: $________________
Husband/Wife: $________________
Interest:
Received From:_______________________________________ $________________
Received From:_______________________________________ $________________
Received From:_______________________________________ $________________
Received From:_______________________________________ $________________
Received From:_______________________________________ $________________
Dividends:
Received From:_______________________________________ $________________
Received From:_______________________________________ $________________
Received From:_______________________________________ $________________
Received From:_______________________________________ $________________
Received From:_______________________________________ $________________
State Income Tax Refund: State _____________________________ $________________
Unemployment Compensation: State ___________________________ $________________
Taxable Retirement Income: Source ___________________________ $________________
*** Please provide me with copies of your W-2s, 1099s and the 12/31/11 statements from each
of the financial institutions that reported the above income to the Internal Revenue Service ***
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
Taxable Retirement Income (Cont’d):
Pension Income: _______________________________________ $________________
IRA Distributions: _______________________________________ $________________
Alimony Received: _______________________________________ $________________
Other (Describe) _______________________________________ $________________
Other (Describe) _______________________________________ $________________
Adjustments to Gross Income:
Educator Expenses $________________
Business Expenses for Armed Forces Reservists, performing artists
or fee-basis state or local government officials $________________
Alimony Payments $________________
Health Savings Account (HSA) deductions $________________
Self Employment Taxes $________________
IRA or Keogh Plan Contributions $________________
Student Loan Interest $________________
Tuition & Fees Deductions $________________
Moving Expenses $________________
Self Employment Health Insurance Premiums $________________
Self Employed SEP, SIMPLE & Qualified Plans $________________
Penalty for Early Withdrawal of Savings $________________
Domestic Production Activities $________________
Archer MSA Deduction $________________
Deduction for clean-fuel vehicles $________________
Jury Duty pay relinquished to employer $________________
*** Please provide me with copies of your Form 1098s, 1099s, and the 12/31/11 statements from
each of the financial institutions that reported the above income to the Internal Revenue Service ***
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
Itemized Deductions:
Medical:
Doctors, Dentists, hospitals and nursing care (net of any
insurance proceeds): $________________
Medicines, drugs and fees paid: $________________
Eyeglasses and hearing aids: $________________
Total automobile mileage To & From medical facilities for medical
care and treatments: _________________
Health insurance premiums paid (excluding disability or
life insurance) including Long Term Care Insurance: $________________
NOTE: Medical expenses increase your itemized deductions if they exceed 7.5%
of your Adjusted Gross Income (AGI). The 2011 medical mileage rates are $ .19
mile for January-June & $ .235/mile for July – December. Please group your miles.
General State Sales Taxes Deduction (Personal Use only – Not for your trade or business)
If you itemize your deductions and live in a state that has a state income tax, you may elect
to deduct either the state income tax or the applicable states sales taxes that were paid.
Deduct State Income Taxes__________ Deduct State Sales Taxes_______________
If you itemize your deductions and live in a state that does not have a state income tax you
may deduct the applicable general sales taxes that you paid during the year.
Enter Your local sales tax rate__________% You have the option of deducting either 1)
the actual sales tax amount from your receipts or 2) the amount from the IRS tables:
Actual Receipts Amount $_________________ Use IRS Tables________________
If you selected “Use IRS Tables” above then you can also deduct an additional
amount for the sales taxes that were paid for separate large purchases. Please enter
those amounts below:
Motor Vehicles (cars, SUVs, trucks, vans, leased vehicles) $______________________
Boats, motorcycles, motor homes, RVs, off-road vehicles $______________________
Airplanes $______________________
Personal Residence Home Building Materials (New Homes) $______________________
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
Taxes:
Real Estate (Describe Properties): __________________________ $________________
Real Estate (Describe Properties): __________________________ $________________
State Income (State): __________________________ $________________
State Income (State): __________________________ $________________
State Disability Insurance (State): __________________________ $________________
Vehicle Ad Valorem (Non-Texas) (State): ____________________ $________________
Vehicle Ad Valorem (Non-Texas) (State): ____________________ $________________
Other Taxes (Please describe): _________________________________ $________________
Interest Expense:
NOTE: The interest expense for personal loans, automobile, boat, credit cards or personal
line of credit loans can not be deducted on Schedule A
Student Loan Interest (Please indicate Recipient)
Loan Company: ______________________________________ $________________
Home Mortgage Interest (Please indicate Recipient)
Mortgage Company: ______________________________________ $________________
Mortgage Company: ______________________________________ $________________
Mortgage Company: _______________________________________ $________________
Broker/Margin Interest Paid (Please indicate Recipient)
Investment Company: ______________________________________ $________________
Investment Company: ______________________________________ $________________
Investment Company: _______________________________________ $________________
*** Some borrowers may be able to deduct Mortgage Insurance Premiums paid on mortgages taken out or refinanced after
2006. A borrower who prepays premiums for later years may deduct only the premiums that relate to 2011, except for
prepayments for guarantees made by the Department of Veterans Affairs or the Rural Housing Service. Only mortgage
insurance contracts issued during 2007, 2008, 2009 or 2010 qualify for this new itemized deduction. ***
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
Contributions (Cash):
Religious: _____________________________________________ $________________
Religious: _____________________________________________ $________________
Religious: _____________________________________________ $________________
Religious: _____________________________________________ $________________
Charitable (i.e. United Way, March of Dimes, American Red Cross, American Heart Association,
etc: _____________________________________________ $________________
Charitable (i.e. United Way, March of Dimes, American Red Cross, American Heart Association,
etc: _____________________________________________ $________________
Charitable (i.e. United Way, March of Dimes, American Red Cross, American Heart Association,
etc: _____________________________________________ $________________
Charitable (i.e. United Way, March of Dimes, American Red Cross, American Heart Association,
etc: _____________________________________________ $________________
Contributions (Non Cash):
(i.e. Goodwill Industries, Capital Area Food Bank, Salvation Army, etc)
Organization: _____________________________________________ $________________
Organization: _____________________________________________ $________________
Organization: _____________________________________________ $________________
Volunteer Work: (Describe organization, mileage and expenses involved)
Organization: _____________________________________________ ________________
Organization: _____________________________________________ ________________
Organization: _____________________________________________ ________________
Special new rules apply for documenting charitable donations made in taxable years beginning after
August 17, 2006. For most taxpayers the requirement began in 2007. The charitable organization
mileage rate for 2011 is $ .14/mile.
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
Miscellaneous Deductions:
Professional or Union Dues __________________________ $________________
Professional Publications & Job Supplies__________________________ $________________
Unreimbursed Business Travel __________________________ $________________
Unreimbursed Meals & Entertainment __________________________ $________________
Employment Related Education __________________________ $________________
Job hunting costs __________________________ $________________
Safety Deposit Box __________________________ $________________
2010 Tax Return Preparation __________________________ $________________
Educator Expenses __________________________ $________________
Investment Counsel and Tax Planning __________________________ $________________
Business Use of Your Home __________________________ $________________
IRA Custodial Fees __________________________ $________________
Gambling losses __________________________ $________________
Other (Please Describe) __________________________ $________________
Other (Please Describe) __________________________ $________________
Moving Expenses:
Distance From Former Home to New Place of Work - ___________________
Distance from Former Home to Old Place of Work - ____________________
Transportation of Household Hoods: $________________
Storage Costs (new area) First 30 days only $________________
Travel Expenses for Taxpayers to New Location $________________
Lodging Expenses Enroute to New Location $________________
Unallowable Moving Expenses $________________
Total Moving Expenses $________________ Employer Reimbursements $________________
Total Driving Distance __________________ # of Cars Driven _________________
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
Moving Expenses (Cont’d):
Do Not Include the Costs for any of the following expenses:
 Any part of the purchase price of your new home.
 Car tags.
 Driver's license.
 Expenses of buying or selling a home (including closing costs, mortgage fees, and points).
 Expenses of entering into or breaking a lease.
 Home improvements to help sell your home.
 Loss on the sale of your home.
 Losses from disposing of memberships in clubs.
 Mortgage penalties.
 Pre-move house hunting expenses.
 Real estate taxes.
 Refitting of carpet and draperies.
 Return trips to your former residence.
 Security deposits (including any given up due to the move).
 Storage charges except those incurred in transit and for foreign moves.
Other Taxes:
First Time Home Buyer Credit Repayment (1/15 of 2008 credit amount) $________________
Tax Credits:
Residential Energy Expenses __________________________ $________________
Non Business Energy Property Expenses __________________________ $________________
First Time Home Buyer Credit __________________________ $________________
Adoption Expenses __________________________ $________________
Child & Dependent Care Credit __________________________ $________________
Child Tax Credit __________________________ $________________
Foreign Taxes Paid Credit __________________________ $________________
Education Credit __________________________ $________________
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
RENTAL PROPERTY OWNERS
Rental Income .................................................................................... $____________________________
Rental Expenses:
Mortgage interest ........................................................................... $_____________________________
Real estate taxes ............................................................................ $_____________________________
Property / Mortgage insurance ....................................................... $_____________________________
Repairs ........................................................................................... $_____________________________
Management fees ........................................................................... $_____________________________
Maintenance and repairs ................................................................. $____________________________
Utilities ........................................................................................... $_____________________________
Depreciation (I will calculate) ...................................................... $___________XXXXXX_________
Other (specify) ............................................................................... $_____________________________
.................................................................... $_____________________________
.................................................................... $_____________________________
The Business Mileage Rate for 2011 is $ .51/mile for January – June and $ .555/mile of July –
December. Please provide your 2011 mileage data in these two groupings.
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
BUSINESS / PROFESSIONAL INCOME
Gross Business Income ............................................................................ $________________________
Reported on a Form 1099 $_______________________ Not Reported on a Form 1099 __________________
Business expenses:
Advertising .......................................................................................... $__________________________
Bank service char ges ......................................................................... $__________________________
Car or truck expense ......................................................................... $__________________________
Depreciation (I will calculate) ...................................................... $___________XXXX.XX_____
Dues, publications, books, etc .........................................................$________________________
Insurance ........................................................................................$________________________
Interest ............................................................................................ $_______________________
Legal and other professional expense ............................................. $_______________________
Office supplies and expenses ......................................................... $_______________________
Travel and entertainment ........................................................................... $_____________________________
Other (describe) .................................................................................. $__________________________
....................................................................... $__________________________
..................................................................... $__________________________
$__________________________
Name of Business:_______________________ Date First Commenced Business __________________
Federal Tax Identification Number __________ State Tax Identification Number__________________
State Charter Incorporation #_______________ Date of Incorporation ___________Business Form_________
Business Vehicle Information:
Vehicle Make: _______________Model _____________Year _________ Date in Service _________
1/1/2011 Mileage _____________12/31/11 Mileage_________________ 2011 Business Miles_____________
The Business Mileage Rate for 2011 is $ .51/mile for January – June and $ .555/mile of July –
December. Please provide your 2011 mileage data in these two groupings.
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
Many of the tax law provisions that were due to expire on 12/31/11 were extended. Please
advise me if any of these changes may be applicable to you by placing a check mark next to
the topic below if any of these changes could affect your 2011 Federal Tax return:
□ Expiring Tax Breaks Extended
Several popular tax breaks that were scheduled to expire on 12/31/11 were extended. As a result, eligible
taxpayers can claim:
 The deduction for state and local sales taxes
 The educator expense deduction
 The tuition and fees deduction, and
□ Residential Energy Credits
You may be able to take one or both of the following credits if you made energy saving improvements to
your home located in the United States in 2011.
 Non-business energy property credit.
 Residential energy efficient property credit.
If you are a member of a condominium management association for a condominium you own or a tenant-
stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share
of any costs of the association or corporation for purposes of these credits.
□ Non-business energy property credit
You may be able to take a credit equal to the sum of:
1. 10% of the amount paid or incurred for qualified energy efficiency improvements installed during
2011, and
2. Any residential energy property costs paid or incurred in 2011.
There is a lifetime limit of $500 for all years after 2005, of which only $200 can be for windows; $50
for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace
or hot water boiler; and $300 for any item of energy efficient building property. If the total of non-
business energy property credits you have taken in previous years (after 2005) is more than $500,
you cannot take this credit in 2011.
Qualified energy efficiency improvements are the following improvements that are new, can be
expected to remain in use at least 5 years, and meet certain requirements for energy efficiency.
 Any insulation material or system that is specifically and primarily designed to reduce heat loss or
gain of a home.
 Exterior windows (including skylights).
 Exterior doors.
 Any metal or asphalt roof that has appropriate pigmented coatings or cooling granules specifically
and primarily designed to reduce heat gain of the home.
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
□ Residential energy efficient property credit.
You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water
heating property, fuel cell property, small wind energy property, and geothermal heat pump property.
The credit amount for costs paid for qualified fuel cell property is limited to $500 for each one-half
kilowatt of capacity of the property.
Basis reduction. You must reduce the basis of your home by the amount of any credit allowed.
Residential energy property is any of the following.
 Certain electric heat pump water heaters; electric heat pumps; central air conditioners; natural
gas, propane, or oil water heaters; and stoves that use biomass fuel.
 Qualified natural gas, propane, or oil furnaces; and qualified natural gas, propane, or oil hot water
boilers.
 Certain advanced main air circulating fans used in natural gas, propane, or oil furnaces.
Limitation. The total amount of credit you can claim in 2010 and 2011 is limited to $1,500.
□ First-Time Homebuyer Credit
For most people, this credit is not available for homes purchased in 2011. Members of the
uniformed services or Foreign Service and employees of the intelligence community may still be
able to claim the credit.
In general, you can claim the credit only if you meet all three of the following requirements.
1. You (or your spouse if married) are, or were, a member of the uniformed services or Foreign
Service or an employee of the intelligence community and were on qualified official extended
duty for at least 90 days during the period beginning after December 31, 2008, and ending
before May 1, 2010.
2. You bought a main home in the United States:
a. After December 31, 2010, and before May 1, 2011, or
b. After April 30, 2011, and before July 1, 2011, and you entered into a binding contract
before May 1, 2011, to buy the home before July 1, 2011.
3. You (and your spouse if married) did not own any other main home during the 3-year period
ending on the date of purchase.
Special rule for long-time residents of same main home. Even if your are not a first-time
homebuyer, you may be able to claim the credit if you meet all three of the following requirements.
1. You (or your spouse if married) are, or were, a member of the uniformed services or Foreign
Service or an employee of the intelligence community and were on qualified official extended
duty for at least 90 days during the period beginning after December 31, 2008, and ending
before May 1, 2010.
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
2. You bought your main home in the United States:
a. After December 31, 2010, and before May 1, 2011, or
b. After April 30, 2011, and before July 1, 2011, and you entered into a binding contract
before May 1, 2011, to buy the home before July 1, 2011.
3. You (and your spouse if married) previously owned and used the same main home as your
main home for any 5 consecutive year period during the 8-year period ending on the date of
purchase of the main home described in (2).
□ Repaying the Credit for a Home Purchased in 2008
If you bought the home after 2008, you generally must repay the credit if you dispose of the home or
the home stops being your main home within the 36-month period beginning on the purchase date.
This includes situations where you sell the home, you convert it to business or rental property, the
home is destroyed, condemned, or disposed of under threat of condemnation, or the lender
forecloses on the mortgage. You repay the credit by including it as additional tax on the return for the
year the home stops being your main home. If the home continues to be your main home for at least
36 months beginning on the purchase date, you do not have to repay any of the credit.
If you and your spouse claim the credit on a joint return, each spouse is treated as having been
allowed half of the credit for purposes of repaying the credit.
Exceptions. The following are exceptions to the repayment rule.
 If you sell the home to someone who is not related to you, the repayment in the year of sale is
limited to the amount of gain on the sale. (See item 9 earlier under Who cannot claim the credit for the
definition of a related person.) When figuring the gain, reduce the adjusted basis of the home by the
amount of the credit.
 If the home is destroyed, condemned, or disposed of under threat of condemnation, and you
acquire a new main home within 2 years of the event, you do not have to repay the credit.
 If, as part of a divorce settlement, the home is transferred to a spouse or former spouse, the
spouse who receives the home is responsible for repaying the credit if required.
 If you die, repayment of the credit is not required. If you file a joint return and then you die, your
surviving spouse must repay his or her half of the credit if required.
 In some cases, there is an exception for members of the uniformed services or Foreign Service
and for intelligence community employees.
Home bought in 2008. If you claimed the credit for a home you bought in 2008, you generally must
have begun repaying it on your 2010 return. You must continue repaying it with your 2011 tax return.
In addition, you generally must repay any credit you claimed for a home you bought in 2008 if you sold
the home in 2011 or the home stopped being your main home in 2011. However, you do not have to
repay the credit if one of the exceptions to the repayment rule applies.
□ Contribution Limits Rise for IRAs and Other Retirement Plans
The contribution limits for both traditional and Roth IRAs are unchanged for 2011. The
limitation is $5,000 if you are younger than age 50 and $6,000 is you are 50 and older.
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
Modified AGI limit for traditional IRA contributions increased. For 2011, if you are covered by a
retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your
modified AGI is:
 More than $90,000 but less than $110,000 for a married couple filing a joint return or a qualifying
widow(er),
 More than $56,000 but less than $66,000 for a single individual or head of household, or
 More than $10,000 for a married individual filing a separate return.
If you either live with your spouse or file a joint return, and your spouse is covered by a retirement plan at
work, but you are not, your deduction is phased out if your modified AGI is more than $169,000 but less
than $179,000. If your modified AGI is $179,000 or more, you cannot take a deduction for contributions to
a traditional IRA.
Modified AGI limit for Roth IRA contributions increased. For 2011, your Roth IRA contribution limit is
reduced (phased out) in the following situations.
 Your filing status is married filing jointly or qualifying widow(er) and your modified AGI is at least
$169,000 You cannot make a Roth IRA contribution if your modified AGI is $179,000 or more.
 Your filing status is single, head of household, or married filing separately and you did not live with
your spouse at any time in 2011 and your modified AGI is at least $107,000. You cannot make a
Roth IRA contribution if your modified AGI is $122,000 or more.
 Your filing status is married filing separately, you lived with your spouse at any time during the
year, and your modified AGI is more than $ 0. You cannot make a Roth IRA contribution if your
modified AGI is $10,000 or more.
Conversions to Roth IRAs. Beginning in 2010, the modified AGI and filing status requirements for
converting a traditional IRA to a Roth IRA were eliminated. Also, for any 2010 rollovers from an IRA other
than a Roth IRA to a Roth IRA, any amounts that would be included as income will be included in income
in equal amounts in 2011 and 2012 IF you did not include the entire amount in income in 2010.
Special rules for 2010 conversions to Roth IRAs. For any conversions from a traditional, SEP, or
SIMPLE IRA to a Roth IRA in 2010, any amounts required to be included in income are generally included
in income in equal amounts in 2011 and 2012 unless you elected to include the entire amount in income
in 2010. You may be required to include an amount other than half of a 2010 conversion from a traditional,
SEP, or SIMPLE IRA to a Roth IRA in income in 2011 if you also took a Roth IRA distribution in 2010 or
2011. See Publication 590 for more information on the amount to include in income in 2011 from a 2010
conversion to a Roth IRA.
In-plan rollovers to designated Roth accounts. If you are a plan participant in a 401(k), 403(b), or
457(b) plan, your plan may permit you to roll over amounts in those plans to a designated Roth account
within the same plan. The rollover of any untaxed amounts must be included income. For 2010 in-plan
Roth rollovers, the taxable amount is included in income in equal amounts in 2011 and 2012 unless you
elected to include the entire amount in income in 2010. You may be required to include an amount other
than half of a 2010 in-plan Roth rollover in income in 2011 if you also took a distribution from your
designated Roth account in 2010 or 2011. See Publication 575 for more information.
Rollovers to Roth IRAs. You can roll over distributions directly from a qualified retirement plan (other
than a designated Roth account) to a Roth IRA.
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
You must include in your gross income distributions from a qualified retirement plan (other than a
designated Roth account) that you would have had to include in income if you had not rolled them over
into a Roth IRA. You do not include in gross income any part of a distribution from a qualified retirement
plan that is a return of contributions to the plan that were taxable to you when paid. In addition, the 10%
tax on early distributions does not apply.
Catch-up contributions in certain employer bankruptcies. The provision for additional catch-up
contributions in certain employer bankruptcies does not apply for 2010 or later years.
Reminders:
Deemed IRAs. A qualified employer plan (retirement plan) can maintain a separate account or annuity
under the plan (a deemed IRA) to receive voluntary employee contributions. If the separate account or
annuity otherwise meets the requirements of an IRA, it will be subject only to IRA rules. An employee's
account can be treated as a traditional IRA or a Roth IRA. For this purpose, a “qualified employer plan”
includes:
 A qualified pension, profit-sharing, or stock bonus plan (section 401(a) plan),
 A qualified employee annuity plan (section 403(a) plan),
 A tax-sheltered annuity plan (section 403(b) plan), and
 A deferred compensation plan (section 457 plan) maintained by a state, a political subdivision of a
state, or an agency or instrumentality of a state or political subdivision of a state.
Contributions to both traditional and Roth IRAs. For information on your combined contribution limit if
you contribute to both traditional and Roth IRAs, see Roth IRAs and traditional IRAs under How Much Can
Be Contributed?
Reporting Capital Gains: Beginning in 2011 report all capital gains and losses on Form 8949. Form
8949 is new. Many transactions that, in previous years, would have been reported on Schedule D (Form
1040) must now be reported on Form 8949 if they occur in 2011. Complete Form 8949 before you
complete line 1, 2, 3, 8, 9, or 10 of Schedule D (Form 1040).
Use Form 8949 to report:
 The sale or exchange of a capital asset not reported on another form or schedule,
 Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for
business or profit, and
 Non-business bad debts.
Use Schedule D (Form 1040):
 To figure the overall gain or loss from transactions reported on Form 8949, and
 To report capital gain distributions not reported directly on Form 1040, line 13 (or effectively
connected capital gain distributions not reported directly on Form 1040NR, line 14).
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
Other Important 2011 Tax Law Provisions:
□ Adoption Expenses – For 2011, the adoption credit is refundable, meaning that you may claim it
even if you owe no tax. The maximum adoption credit has increased to $13,360. Also, the maximum
exclusion from income for benefits under your employer's adoption assistance program has increased
to $13,360. These amounts are phased out if your modified AGI is between $185,210 and $225,210.
You cannot claim the credit or exclusion if your modified AGI is $225,210 or more. See Form 8839,
Qualified Adoption Credit, and the Instructions for Form 8839 for more information.
.
□ Alternative minimum tax (AMT) exemption amount increased. The AMT exemption amount
has increased to $48,450 ($74,450 if married filing jointly or a qualifying widow(er); $37,225 if married
filing separately).
□ American Opportunity Tax Credit. The maximum Hope education credit has increased to $2,500
for most taxpayers. The increased credit is now called the American Opportunity Tax Credit. Part of
the credit is now refundable for most taxpayers. Claim that part on line 66. Claim any other education
credits on line 49. The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of
2010 extends the AOTC for two additional years until Dec. 31, 2012.
1. This credit, which expands and renames the existing Hope Credit, can be claimed for qualified
tuition and related expenses that you pay for higher education in 2011 and 2012. Qualified tuition and
related expenses include tuition, related fees, books and other required course materials.
2. The credit is equal to 100 percent of the first $2,000 spent per student each year and 25 percent of
the next $2,000. Therefore, the full $2,500 credit may be available to a taxpayer who pays $4,000 or
more in qualifying expenses for an eligible student.
3. A taxpayer who pays qualified tuition and related expenses and whose federal income tax return
has a modified adjusted gross income of $80,000 or less ($160,000 or less for joint filers) is eligible for
the credit. The credit is reduced ratably if a taxpayer’s modified adjusted gross income exceeds those
amounts. A taxpayer whose modified adjusted gross income is greater than $90,000 ($180,000 for
joint filers) cannot benefit from this credit.
4. Forty percent of the credit is refundable, so even those who owe no tax can get up to $1,000 of the
credit for each eligible student as cash back.
5. The credit can be claimed for qualified expenses paid for any of the first four years of post-
secondary education.
6. You cannot claim the tuition and fees tax deduction in the same year that you claim the American
Opportunity Tax Credit or the Lifetime Learning Credit. You must choose to either take the credit or the
deduction and should consider which is more beneficial for you.
□ Buying U.S. Series I Savings Bonds With Your Refund. You can now receive up to $5,000 of
U.S. Series I Savings Bonds, in increments of $50.00, as part of your income tax refund without
setting up a TreasuryDirect® account in advance.
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
□ Deduction for Motor Vehicle Taxes If you bought a new motor vehicle after February 16, 2009,
you may be able to deduct any state or local sales or excise taxes on the purchase. In states without
a sales tax, you may be able to deduct certain other taxes or fees instead on Schedule A if you are
itemizing deductions and are not electing to deduct state and local general sales taxes.
□ Divorced or separated parents Noncustodial parents claiming an exemption for a child can no
longer attach certain pages from a divorce decree or separation agreement instead of Form 8332 if
the decree or agreement was executed after 2008. The noncustodial parent must attach Form 8332
or a similar statement signed by the custodial parent to release a claim for an exemption.
□ Earned income Credit (EIC) The EIC has increased for people with three or more children and for
some married couples filing jointly. You may be able to take the EIC if:
 Three or more children lived with you and you earned less than $43,998 ($49,078 if married filing
jointly),
 Two children lived with you and you earned less than $40,964 ($46,044 if married filing jointly),
 One child lived with you and you earned less than $36,052 ($41,132 if married filing jointly), or
 A child did not live with you and you earned less than $13,660 ($18,740 if married filing jointly).
The maximum investment income you can have and still receive the credit is $3,150.
□ Elective Salary Deferrals The maximum amount that you can defer under all plans is generally
limited to $16,500 ($11,500 if you have only SIMPLE plans; $19,500 for section 403(b) plans if
you qualify for the 15-year rule). The catch-up contribution limit for individuals age 50 or older at
the end of the year is $5,500 (except for section 401(k)(11) plans and SIMPLE plans, for which
this limit remains unchanged).
□ Alternative Motor Vehicle Credit You may be able to take a credit for You may be entitled to a tax
credit for an alternative motor vehicle you place in service during the year. The vehicle must
meet certain requirements, and you do not have to use it in your business to qualify for the
credit.
□ Home Mortgage Principal Reductions Any Pay-for-Performance Success Payments that reduce
the principal balance of your home mortgage under the Home Affordable Modification Program are
not taxable.
□ Limit on Exclusion of Gain on Sale of Main Home In certain cases, the gain from the sale of
your main home is no longer excludable from income if it is allocable to periods after 2008 when
neither you nor your spouse (or your former spouse) used the property as a main home for at least
two of the preceeding five year period prior to the sale.
□ Mortgage Insurance Premiums – You can treat amounts that you paid in 2011 for qualified
mortgage insurance premiums as home mortgage interest. The insurance must be in connection with
the home acquisition debt and the insurance contract must have been issued after 2006.
□ Personal Casualty and Theft Loss Limit Each personal casualty or theft loss is limited to the
excess of the loss over $100 for 2011. In addition, the 10% of AGI limit generally continues to apply to
the net loss.
J. William Seabrooke, CPA, P.C.
A Professional Corporation
1602 Heathrow Drive (770) 886-2922 (Office)
Cumming, GA 30041 (770) 886-2653 (Fax)
(512) 791-5899 (Mobile)
bill@billseabrookecpa.com
Member: American Institute of Certified Public Accountants
□ “Qualifying Child” Definition Revised The following changes to the definition of a qualifying child
apply.
1. To be your qualifying child, a child must be younger than you unless the child is permanently and
totally disabled.
2. A child cannot be your qualifying child if he or she files a joint return, unless the return was filed
only as a claim for refund.
3. If the parents of a child can claim the child as a qualifying child but no parent so claims the child,
no one else can claim the child as a qualifying child unless that person's AGI is higher than the
highest AGI of any parent of the child.
4. Your child is a qualifying child for purposes of the child tax credit only if you can and do claim an
exemption for him or her.
□ Standard Deduction and Exemptions:
Your standard
If your filing status is...
deduction is:
Single or Married filing separately $5,800
Married filing jointly or Qualifying
11,600
widow(er) with dependent child
Head of household 8,500
The deduction amount for each “exemption” claimed on your tax return is $3,700.00.
□ Standard Mileage rates The 2011 standard mileage rates (in lieu of actual expenses incurred) are
as follows:
1. Business Use – January 1 – June 30 = $.51/mile; July 1 – December 31 = $ .555/mile
2. Medical Care – January 1 – June 30 = $.19/mile; July 1 – December 31 = $ .235/mile
3. Moving - January 1 – June 30 = $.19/mile; July 1 – December 31 = $ .235/mile
4. Charitable donations & Activities – January 1 – December 31 = $ .14/mile
□ Tax on Child's Investment Income The amount of taxable investment income a child can have
without it being subject to tax at the parent's rate.
If the child's interest, dividends, and other investment income total more than $1,900, part of that
income may be taxed at the parent's tax rate instead of the child tax rate. See Form 8615 (PDF),
Tax for Certain Children Who Have Investment Income of More Than $1,900, or
If the child's interest and dividend income (including capital gain distributions) total less than $9,500,
the child's parent may be able to elect to include that income on the parent's return rather than file a
return for the child. See Form 8814